LULU vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-21.
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
VS
Microsoft Corporation · Technology
$497.12
+41.3% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
MSFT has more upside to fair value
(+41.3%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
LULU |
MSFT |
| Current Price |
$98.06 |
$497.12 |
| Fair Value Estimate |
$99.50 |
$702.35 |
| Upside to Fair Value |
+1.5%
|
+41.3%
|
| Market Cap |
$11.1B |
$3,691.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
18.3x
|
| Price / Sales |
1.0x
|
11.1x
|
| Price / FCF |
8.2x
|
55.1x
|
| Revenue Growth YoY |
-4.3%
|
+17.7%
|
| Gross Margin |
56.1%
|
67.9%
|
| Operating Margin |
17.8%
|
46.8%
|
| Return on Equity |
29.7%
|
33.2%
|
| Dividend Yield |
0% |
0.73% |
| FCF Yield |
12.24%
|
1.81%
|
| Analyst Consensus |
Sell
|
Strong Buy
|
Investment Thesis
Lululemon Athletica designs and retails premium athletic apparel and accessories through company-owned stores and direct-to-consumer channels, with roughly 39,000 employees and a brand built on technical fabrics and community-led fitness positioning. The business still earns high returns on equity of 29.7% and generates $12.00 of free cash flow per share on $97.70 of revenue per share, with TTM g…
Microsoft is a global infrastructure-software platform spanning Azure, Microsoft 365, security, Dynamics, Windows, GitHub and AI copilots, with high business quality supported by enterprise distribution, explicitly cited switching costs, a $678 billion commercial RPO balance, 67.9% TTM gross margin, 46.8% TTM operating margin, 40.3% TTM net margin and 33.2% ROE. Revenue grew 17.7% and earnings gr…
Accumulation Zones
| Metric |
LULU |
MSFT |
| Zone Low |
$74.62 |
$526.76 |
| Zone High |
$84.58 |
$597.00 |
| In Buy Zone? |
No
|
Yes
|